Ninth Circuit decides California employers can require employees enter mandatory arbitration agreements as condition of employment. Chamber of Commerce v Bonta, No. 20 15291, 9th Cir. February 15 2023, three judge panel found Assembly Bill 51, AB 51, preempted by federal law
Ninth Circuit affirmed district court barring enforcement of California’s Assembly Bill AB 51 with respect to arbitration agreements governed by Federal Arbitration Act FAA. AB 51 seeks to impose criminal and civil penalties on employers that require individuals to sign.
The Act invalidates pre-dispute arbitration agreements and class waivers regarding sexual assault or sexual harassment claims that arise after March 3, 2022. The Act also states that the determination as to whether the law applies must be made by a court.